Microsoft bought Skype back in 2011 and Skype functionality could be one of the prominent social features of the next generation Xbox. According to TechRadar, Skype is ready to make a huge splash in the next generation arena.

The biggest feature on Skype is the ability to make video calls. Skype does this very well compared to other competing products; thus it would make sense for Microsoft to fully incorporate this feature into the Xbox 720. We have seen Microsoft slowly replacing Windows Live Messenger with Skype; it would make sense to make Xbox Live communication features a full Skype experience and bring its software and hardware products closer to each other.

"If it's an Xbox we're trying to connect to - it's probably not that hard to believe we're looking at that - what does that mean for gaming?" says Derek Snyder, head of Skype's mobile and marketing group in an interview with TechRadar.

"How does Skype enhance the gaming proposition? Of course Xbox has things with voice and messaging chat at the moment, but does video make sense for that case?" Snyder adds.

It is safe to say Skype will play a huge role in the next generation Xbox. If Microsoft and Skype can incorporate all the most important features correctly, the Xbox 720 will become one of the must-own devices for holiday season 2013.

Sony has already shown its hand, and the PS4 is very impressive for the most part, so there is no room for error when Microsoft reveals the Xbox 720 in April, — if that rumor turns out to be true.